The Ahli United Bank is a provider of Islamic mortgages. Their products combine the core principles of Islam with the UK mortgage market.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The Ahli United Bank UK was previously known as the United Bank of Kuwait plc. The bank was established in 1966 to help customers in the UK with their finances and today its mandate is to provide a wide range of services that combine British banking practices with a special understanding of the Arab world.
Traditional mortgages based on interest payments do not comply with Sharia law. In Islam, interest paid on a mortgage is unacceptable because interest is classed as an excess payment and one party in the contract gains at the expense of the other. For this reason, many Muslims prefer to take out a Sharia compliant mortgage.
Ahli United Bank mortgages are different to traditional type of mortgages in that the bank purchases the property and then sells it back to the customer for the same price. The purchase price is spread over a period of up to 25 years. In the meantime, the bank charges the customer rent. Once the full purchase price of the property has been repaid in full, the customer will own the property outright. Profit from the transaction is derived from the rental payments.
There are two main types of Ahli United Bank mortgage: a standard home purchase mortgage and a buy to let home purchase mortgage.
Additional payments can be made at every annual review without incurring a penalty. The balance of the mortgage can also be repaid in full without penalty.
Ahli United Bank mortgages are suitable for customers aged 18 and over. The mortgage term must be completed by the time the customer has reached the age of 65.
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